Q&A: When a married couple buys a home, which person’s credit score is used to qualify for the loan?
Question by Judge Judy of Y/A: When a married couple buys a home, which person’s credit score is used to qualify for the loan?
Is it an average of both credit scores? And, is it strictly based on the “fico score” opposed to the information contained on the credit report? For exampe, my fico score is just average but my credit report is really really good, I think my fico score dropped because of numerous inquiries when I was shopping for a loan a year ago and also one late payment over 3 years ago.
Best answer:
Answer by Special K
They will look at both your credit reports if your buying the home together…But there is no black and white answer to this because there are all kinds of companies that do”creative financing” for home purchases, you need to ask them.
Know better? Leave your own answer in the comments!
From what my sister and her husband was going thru it was both their score.
If you are both signing onthe car, it will use both. If one is signing then it will be the one…if they pull both credits and one has great and one has faulty bad credit, they will use the bad credit to increase the interest…
if both people are on the loan, they take the highest of both scores.
we just refinanced our bmw and mercedes. We used my fico score <780+> his income <100k+> but we are both on the loans. His score was to low to refi at a good rate, and my income was to low to refi both cars
If you want both names on the mortgage…then both
If the home loan will be in both names, then both scores and credit histories will be taken into consideration. If you can explain inquiries, then they should not reflect negatively on your score.
Both persons scores are taking into consideration.
My husband and I recently bought a house and he has a good credit score. Mine on the other hand isn’t that good. SO only he applied for the loan and they only used his credit score.
I would suggest that you use both of your credit.
If both names are on it then both scores are used.
They don’t ONLY look at your credit score. They look at your income to debt ratio.
If you are in good standing with your credit and debts, then I don’t think you’ll need to worry about anything. You may not get the interest rate you’d hope for, but you can continue to work on your credit and refinance later with a lower interest rate.
Both
i m not sure but i guess it should be both
Whos ever name u use. Or it could be both names on the loan
Both people’s credit history is considered. The lenders look at the whole report, but they rely mostly on the score since it is easy to deal with just one number. I don’t know what you mean by average score, but if the only problem is one late payment, it should be a pretty good score. I think over 720 qualifies you for the best rate loans.
whoever has better ranking, meaning who has a better score, but depends on your income situation for both of you
See a lender about getting prequalified. They will go over your credit reports and tell you how to go about cleaning it up and how to maximize your potential for obtaining the loan.